as youcan see Monday's market could not sustain selling pressure--the number of downticks across stocks was modest--Tuesday was the reverse, with limited buying. The volume flow measure was solidly negative on the day, and we could not take out the overnight highs. This tape action fit well with the bearish model signals from yesterday, and we're seeing further price weakness in premarket today. I continue to doubt a sustained upside for stocks as long as we see continued commodity weakness, which speaks to global economic weakness, especially in EM.
* We can see breadth weakness in the number of stocks persistently trading under their lower Bollinger Bands versus those trading above (see below; raw data via Stock Charts). Note how the divergence in the cumulative Bollinger balance preceded the drop in October of 2014. We are currently seeing quite a massive divergence; there are simply more stocks across the NYSE universe trading with significant weakness than with significant strength.
* We can see breadth weakness in the number of stocks persistently trading under their lower Bollinger Bands versus those trading above (see below; raw data via Stock Charts). Note how the divergence in the cumulative Bollinger balance preceded the drop in October of 2014. We are currently seeing quite a massive divergence; there are simply more stocks across the NYSE universe trading with significant weakness than with significant strength.
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